OCC Updates Civil Money Penalties Policies and Procedures

OCC

On February 26, the OCC published Bulletin 2016-5 to revise its Policies and Procedures Manual (PPM) to establish new guidance on the agency’s policies and procedures for assessing civil money penalties (CMP) against national banks, thrifts, service providers, and institution-affiliated parties. The newly issued PPM 5000-7 (REV), “Civil Money Penalties,” replaces the following documents: (i) the June 16, 1993 Banking Circular 273, “Civil Money Penalties”; (ii) the May 21, 1993 PPM 5000-27 (REV), “Civil Money Penalty Assessment for Delinquent or Inaccurate Call Reports,” as well as the similarly titled and dated Banking Circular 270 issue; and (iii) the December 3, 2009 OTS Regulatory Bulletin 18-3b, “Enforcement Policy Statement on Civil Money Penalties.” In addition to detailing the agency’s procedural process for determining CMP amounts under 12 USC 1818(i) and for determining the level of action against an institution, the bulletin includes matrices that outline 14 different factors the OCC considers when assessing the severity of a violation against institutions and institution-affiliated parties.